Mobile Wallets

Gone are the days when you had to carry a fat, heavy wallet in your pocket. Now, with the widespread use and launch of various mobile wallets in India, one can pay for almost any product or service, and transfer money with this technology. Be it paying for a taxi ride or buying your morning coffee and breakfast, mobile wallets are the go-to option in today's times.

One can use mobile wallets to make in-store payments, online purchases, pay for digital content, and receive offers, cashbacks and rewards. This type of payment mechanism allows consumers to make ‘tap-and-pay’ purchases and use a single wallet for all purchases, including online and offline purchases. Mobile wallets are integrated and designed to allow secure, hassle-free and speedy payments for goods and services.

A mobile wallet uses a bank account, debit or credit card information to process payments and the payment details are stored in a secure and encoded format. These wallets help lower the payment processing time, reduce fraud and are economical. It is very easy to use a mobile wallet- all you need to do is install the app on your smartphone and register for the service.

What is a Mobile Wallet?

A mobile wallet or an e-wallet is nothing but a digital version of a physical or real-life wallet, where one can add money to purchase various goods and services. One can set up this service on a smartphone by downloading the app, keying in personal information such as name, and payment details such as debit or credit card information. A mobile wallet can be used instead of debit cards, credit cards or money, and a customer can make payment by simply tapping their smartphone or tablet.

These types of wallets offer consumers the ease and convenience of purchasing goods online and also transferring money.

Types of Mobile Wallets in India

There are many types of digital wallets in India. The types are: open, semi-open, closed and semi-closed.

Open mobile wallets: These types of mobile wallets are generally issued by banks. One can purchase goods and services, transfer money and also withdraw money through these mobile wallets.

Semi-open mobile wallet: A semi-open wallet allows users to buy and purchase goods but not withdraw funds. In this type of wallet, one has to load money and use the same for any type of purchase.

Semi-closed mobile wallets: These type of wallets allow consumers to make merchant payments. The mobile wallet company usually ties up with certain specified merchants.

Closed wallets: In these types of wallets a certain specific amount of money is locked with the company. There is also no scope for withdrawal.

How to Register for a Mobile Wallet Service?

Download the app and launch it

Sign up by providing details

Link debit/credit card

Setup password, add money and use

How Does a Mobile Wallet Work?

Mobile wallets work by using Near-Field Communications (NFC)-enabled technology or QR code technology. They digitally store payment-related information in an encoded format for security reasons. There may be many variations of how payment information is stored and this varies from wallet to wallet. Apart from this, other information such as store coupons, loyalty programs, and other personal identity-related information is also stored.

A mobile wallet works by communicating with terminals using various types of information transfer technology

Most mobile wallets use NFC technology to communicate with payment terminals

How to Use a Mobile Wallet?

Open the app

Enter the PIN

Choose the type of transaction you want to carry out

Make payment

Advantages of Mobile Wallets

Cashless transactions at the tap of a button: Mobile wallets help customers go cashless and cardless. There is no need to carry money and search for change. This offers consumers the convenience factor.

Secure and safe: It is not always wise to carry a lot of money as there is a chance one might lose it. Embracing mobile wallets mean that one does not have to carry credit/debit cards or money. Money can be stolen, cards can be stolen or misused but this is not the case in mobile wallets. Digital wallets are secure because they use only encrypted data.

Convenient: Mobile wallets are fast becoming the most convenient form of payment mechanism. It is very simple to use, there is no need to carry anything but your smartphone and all payment information is already on the phone.

Fast and streamlined payments: All mobile wallet based transactions are always much faster, be it online or offline payments. All you have to do is ‘tap and pay’. Not just this, a single mobile wallet app can be used for all kinds of purchases.

Multiple accounts: The main advantage of a mobile wallet is that one can store multiple card and account information in one single app and choose whatever payment mechanism you want to use.

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News About Mobile Wallets

Mobile Wallet Payments on an All Time High in India

There has been an unprecedented rise in the number of digital transactions from 2016 to 2018 across the country. This has been helping numerous companies in the digital payments business , especially after demonetization.

As per a recent survey, it has come to light that more than 55% of people who were part of the study said that they have a mobile wallet and actively use the same to make payments. The study also pointed out that compared to other developed economies, the rate of adoption of such smartphone-based digital wallets is unprecedentedly high here.

The transaction volume has multiplied four-fold to reach 955 billion in 2017. In the year 2013, the transaction volume stood at a mere 24 million. It has been predicted that these figures will soon touch the 1 trillion mark in the first half of the year 2018.

Many international companies such as Google and Amazon have already made strides to adopt to this trend. Google Tez is a free service and money can be sent and payments can be made at the click of a button using UPI. There is no need for bank account number or IFSC code.

1 March 2018

Book My Show to Stop Wallet Services from Feb

Book My Show is most likely to discontinue the wallet services by February this year. This may be due to the Reserve Bank of India’s (RBI) stricter guidelines in connection with mobile wallets and other Prepaid Payment Instruments (PPIs).

Book My Show was launched and became fully operable in 2007. It was founded in 1999.

1 February 2018

Interoperability Between Mobile Wallets to Make Digital Payments Simpler

The decision taken by the Reserve Bank of India to allow e-wallets of private firms to interoperate is sure to change the landscape of digital payments. The move is seen by many as an initiative of encouraging both customers and businesses alike to take up digital transactions. As part of the decision, the apex bank has set December 31 as the deadline for the new rules with regard to e-wallets.

The decision has seen a great response from both e-wallets operators and customers alike. Many e-wallet operators believe that the decision would make digital transactions much simpler. They also feel that allowing interoperability would open the Indian market for Amazon Pay, Apple Pay, Google Tez etc. As for the customers, interoperability will allow them to find a single app that works best for them rather than having to install different payments apps on their smartphones.

Though there is no doubt that the decision is a positive one, it remains to seen whether it invokes the desired response from customers and businesses in the country.

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.